New Delhi, India, February 7: The expected rise in India's adoption of electric vehicles, with EV sales projected to comprise 30-35% of annual vehicle sales by FY30, according to SBI Capital Markets (SBICAPS), presents a substantial opening for the stainless steel sector. The considerable increase from less than 1% EV penetration in 2019 to 7.4% in 2024 signifies a shift in paradigm that will create a substantial market for specialized stainless steel applications in the automotive industry.
The shift towards electric mobility marks a significant milestone in the automotive industry, with batteries and electronic drive units accounting for approximately half the cost of an electric vehicle. This transformation is creating new possibilities for stainless steel applications throughout the electric vehicle supply chain, including battery enclosures, structural components, and charging infrastructure to lower the overall lifecycle cost of these components.
Subhash Kathuria, Chairman of Synergy Steels, said, "The electric vehicle revolution marks a pivotal moment for India's stainless steel industry. The unique attributes of stainless steel and its vital role in electric vehicle production are centered around its high resistance to corrosion and a high strength-to-weight ratio, as well as its structural role in battery protection systems. As India progresses toward domestic battery production through initiatives like the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC), we anticipate a significant rise in demand for specialized stainless steel grades. The industry is particularly enthused about the growth potential in battery enclosures, thermal management systems, and charging infrastructure, where stainless steel's durability and safety characteristics are crucial. This will also drive the share of the automobiles, railways and transport sector in stainless steel applications which is currently anticipated to be 9% by 2030."
The government's Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell manufacturing is forecast to give a significant boost to domestic battery production, with original equipment manufacturers claiming to cut battery outsourcing by half by the end of FY30. According to S&P Global, electric vehicle lithium battery production in India is expected to soar from 4 gigawatt.hours in 2023 to nearly 139 GWh by 2035. This shift in the EV supply chain towards localization presents major opportunities for the stainless steel sector to create specialized products for battery manufacturing and related infrastructure.
emphasizes its significance in India's future towards clean mobility.
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